DongA Bank launches credit card business by implementing

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1 5 spring Summer 2008 BPC INTERNATIONAL NEWSLETTER our achievements SmartVista processing solution from BPC was rated Strong Positive in MarketScope for Multiregional Card Management Software BPC s SmartVista solution, a comprehensive, state-of-the-art family of closely integrated software applications for transaction processing and card management received a Strong Positive rating in the leading analytical report MarketScope for Multiregional Card Management Software, 2008 fulfilled by Gartner Inc. in July This year BPC was evaluated among 12 international vendors and received the highest possible rating Strong Positive. The company believes that this achievement was possible thanks to the following SmartVista features which significantly contributed to the assessment besides the others: Flexibility, high performance and broad functionality of the solution (including payment hub functions). The company s sustained investments in R&D, infrastructure and alliance building, leveraging the company s local and international expertise and product development capabilities. Today BPC shows the highest levels of commitment and energy to the next generation of SmartVista products to complement Diners Club New Zealand aims to strengthen its market presence with SmartVista processing solution, BPC BPC has been selected to implement its SmartVista Suite at Diners Club International franchise in New Zealand. The solution will deliver issuing and acquiring of charge cards, credit cards and a range of prepaid cards. Project has commenced in New Zealand in January In 2007 Diners Club started to look for a new solution able to support the card business in New Zealand, thus allowing the company to increase the speed to market with new products and services, to enhance multichannel delivery and to reduce the TCO. BPC s SmartVista Suite of software products for transaction processing and card management became a solution of choice for Diners Club due to the unique combination of open modern architecture and comprehensive functionality with the ability to support the payment organization s future growth in the dynamic Asia Pacific card market. Within the project BPC will install a fully functional SmartVista based solution, comprising SmartVista Front- End, SmartVista Back-Office and SmartVista CardGen components, at the Diners Club franchise in New Zealand. Diners Club is also considering similar implementations in the other two franchises in Singapore and Malaysia. and extend its capabilities and to offer ongoing state-of-the-art solutions, backed by the knowledge of the latest industry trends and standards. Professional on-going maintenance with 24x7 Help Desk, on-line service request entry and tracking facilities (ESM), remote access or on-site support and dedicated support officers. Industry standards compliance including ISO quality standard, as attested by a certificate from SGS International Certification Services (SGS ICS), and other payment card industry standards and requirements. Excellent evaluations and references from existing SmartVista customers. We are very proud that our SmartVista Suite has been rated by key projects DongA Bank launches credit card business by implementing SmartVista solution of BPC the leading international research company, which we believe means it has taken its place among the leading providers of software for card processing and management. We believe this positive assessment is down to our responsive, open and comprehensive disclosure to Gartner analysts during the assessment process and very positive feedback from our customers. We shall go on working hard to correspond to our Strong Positive rating in future and maintain our leading positions in the retail financial software market, stated Vasily Grigoriev, CEO, BPC Banking Technologies. BPC announced that DongA Bank, one of the largest Vietnamese commercial banks, implemented BPC s SmartVista solution as the cornerstone of its new Credit Card processing center. The solution will allow the bank to support issuing, management and processing of Visa, MasterCard and ATM cards, offer to its customers various credit card products and raise its market share in the retail finance market. The strategic plans of DongA Bank required the quick implementation of the modern IT infrastructure for a fully fledged support of the developing card business. The BPC team together with its local Vietnamese technology partner CMC Corporation justified all of the bank s expectations having launched Visa credit card issuing functionality within a record breaking period. Established in 1992, DongA Bank quickly proved its premier service quality in the principles of efficiency, security and stability. forthcoming events September 2008 Intercontinental Hotel Miami, Florida Cards & Payments Latin America September 2008 ExpoCenter Moscow, Russia Cardex & IT Security October 2008 Hilton Hotel Budapest, Hungary Lafferty Cards Central and Eastern Europe October 2008 Yalta-Intourist Yalta, Ukraine Retail Banking November 2008 Paris-Nord Villepinte Paris, France CARTES & IDentification November 2008 Ho Chi Minh City Vietnam SmartVista User Group (Continued on Page 2) (Continued on Page 2)

2 2 BPC INTERNATIONAL NEWSLETTER, spring Summer 2008 CONTRACT WINS Diners Club New Zealand aims to strengthen its market presence with SmartVista processing solution, BPC DongA Bank launches credit card business by implementing SmartVista solution of BPC (Continued from Page 1) The SmartVista Front-End system designed for online processing of financial transactions will provide interfaces to banks and local switch providers running ATM and POS networks, to service providers and to Diners Club International. The system will be handling transactions originated in different channels and routing them to SmartVista Back-Office or Diners Club Service Centre (DCSC) for authorization. The embedded SmartVista Fraud Prevention and Monitoring module will allow Diners Club to detect and block suspicious transactions during authorization thus reducing the level of losses resulting from card fraud. SmartVista Back-Office CMS will be also connected to DCSC for clearing and settlement, as well as to a wide number of third party systems, including GL, collections system, credit bureau, internet bank, merchants. It will provide facilities to generate and manage a variety of card products, including credit, debit, charge, personal, corporate, prepaid, chip based EMV cards with multiple linkages between cards and customer accounts. In its turn, SmartVista CardGen subsystem will enable Diners Club to prepare data and perform personalization of both magnetic stripe and EMV chip cards with security provided end-to-end. BPC s SmartVista solution has been built with a focus on flexibility achieved through parameterization that allows Issuers to flexibly define relationships between cardholders, cards and accounts and to easily set up new products and services, fees and rates, card loyalty and rewards schemes. All these capabilities coupled with rich functionality of the SmartVista credit module designed to support a wide range of credit products and a comprehensive accounting for credit transactions, have greatly influenced the decision of Diners Club to select SmartVista. Our effort to maintain and renew the existing systems was ever increasing, whilst an ability to extend their functionality and performance to support new time to market products and volumes was decreasing. We needed a flexible and scalable platform to meet the increasing card processing requirements, which translates into modern products that can be brought to market quickly. The ability of BPC s SmartVista to support multi-channel delivery, sophisticated card products, Fraud prevention, card loyalty and rewards schemes all on a single platform made us confident that it is a solution we can build on for the coming years, stated James Koh, Executive Director Diners Club. It was a landmark deal for BPC in the Asia Pacific market, and we are extremely proud that SmartVista has become a solution of choice for the world leading payment organization. The SmartVista Suite has already proven its value as a transaction and cards processing platform for the Diners Club franchise in the Philippines, and now it will bring the accumulated experience for the project in New Zealand and other exciting projects with Diners Club, which I believe will further strengthen the position of BPC as a provider of modern open-ended solutions for the Asia Pacific payment industry, commented Rajan S Narayan, Head of BPC Asia Pacific. (Continued from Page 1) Today DongA Bank is the second largest commercial bank in Vietnam and one of the most active players in the card products market. It operates through a nationwide network of branches and sales offices, providing the customers with a variety of diversified banking services. The strategic plans of the bank include introduction of the debit and credit Visa and MasterCard cards, extension of various card products, promotion of the credit functionality and other modern card products previously unavailable for the bank s customers. With its extensive branch network and all of the modern SmartVista s advantages for the card business competitive development, the DongA Bank is planning to quickly raise this sector of its services, to diversify card products and bring in new clients with time to market capabilities. Before the launch of the new processing center, the bank used several modules provided by different vendors to support its ATM card business and transaction acquiring through local payment network VNBC. The completion of the first stage of the SmartVista implementation and its certification by Visa International allowed the bank to introduce to the market Visa debit and credit cards, later stages comprise the bank s processing center certification for MasterCard cards processing and full migration of the ATM cards functionality to the new card platform including ATM transactions acquiring and switching to the local payment scheme VNBC. Having implemented SmartVista, the bank acquired a single reliable platform capable of supporting both the current needs of the card business and the bank s strategic plans for its further development. The solution s flexibility, scalability and support of all the modern technologies enables DongA Bank to benefit from continuous upgrades of their product range in line with market changes and mandates from local and international payment schemes thus actively strengthening the bank s positions in the market. Due to the technological advantages of the BPC s SmartVista suite of products and the company s commitment to the highest standards in implementation and project management, the SmartVista based solutions become increasingly popular with financial organisations seeking quick and efficient implementation of their card business, commented Rajan S. Narayan, Director, BPC Asia Pacific. The company has already realised a number of projects in the Asia Pacific region and the new project at DongA Bank allows us both to fulfill the growing demand for the modern flexible open standards solutions in the Asia Pacific market and to take on new challenges for the company s expansion in the region. To stay ahead of the competition and rapidly adapt to the market changes it s vital to track and pro-react to emerging technology trends, quickly introduce new products to the market and continuously develop the quality of services, said Mr Khuong, Deputy CEO of DongA Bank. We expect that SmartVista implementation will allow us to enhance customer loyalty by providing them with greater and reliable convenience in e-payments and new effective ways to manage their financial needs including different lending opportunities based on the credit cards as well as to bring in new customers interested in new banking services and products use.

3 BPC INTERNATIONAL NEWSLETTER, spring Summer 2008 CONTRACT WINS BPC strengthens its presence in emerging markets: SmartVista to ensure Alp Jamol Bank s retail services development in Uzbekistan Alp Jamol Bank, one of the first private banks in Uzbekistan has started the deployment of its own fully functional processing centre based on SmartVista Suite a modern software solution for cards and e-payments processing designed by the company BPC. The in-house processing centre will allow Alp Jamol Bank to expand and improve its range of services available with the use of payment cards and introduce to its customers new VIP-products offered by the International Payment Schemes. Currently the expansion of the retail services range and development of retail branches are the priority business directions of Alp Jamol Bank. The cards issued by the bank are actively used by both its private customers and legal entities. Among the most successful services provided by the bank are revolving credit cards, debit cards with overdraft in national and foreign currencies and other credit products based on cards. The bank also offers a wide range of products and services specially developed for VIP-customers, which requires the use of cutting-edge technologies to support the highest quality standards. These factors determined the bank s decision to launch its own processing center based on the SmartVista solution. The in-house fully functional processing solution will ensure all the necessary facilities for Visa and MasterCard issuing and acquiring, including EMV-cards, and will permit the bank to raise its card business performance and move away from the third party processors services. The bank will also obtain more flexible mechanisms for card product management and efficient support of such in demand modern services as Internet and mobile banking, various banking and payment services, different credit products based on payment cards, new Visa and MasterCard VIP products, multicurrency operations and other options, providing the bank s customers with a convenient access to their accounts and an efficient tool for their fund management. The high demand for modern processing solutions in Uzbekistan and other CIS countries reflects the maturing of national post Soviet Union markets and results in the need for modern high end software products. We are very proud that SmartVista is one of the first solutions to meet these demands, stated Faris Al-Mashta, Director for Business Development, BPC. The rapid growth of retail financial services in the world and in the region requires the financial organisation to quickly adapt to the market changes. Currently the support of the modern products and high quality of services is a way to attract new customers and to guarantee their loyalty. That is the reason we have chosen SmartVista for our processing centre deployment, as this solution is oriented at the future development of retail banking services. We are confident that only a solution of SmartVista s quality is capable of providing a stable platform for the efficient development of Alp Jamol Bank, said Lenur Osmanov, Hеad of e-payment systems implementation and development department, Alp Jamol Bank. The Kazakh Tsesnabank implements SmartVista to support its card business growth The Kazakh commercial bank Tsesnabank has embarked on the implementation of its own fully functional in-house processing centre based on the SmartVista system provided by the company BPC. Thanks to its technological and functional advantages SmartVista will support the bank s development strategy in the sphere of retail finances and ensure the fast introduction of new products and services based on International Payment Cards. Founded in 1992, today Tsesnabank is one of the largest and most rapidly developing banks in Kazakhstan. The bank s branch network comprises 19 full-service branches and 59 outlets throughout Kazakhstan servicing over private and corporate clients. The Tsesnabank s customers and international partners acknowledge the bank s deserved reputation as a reliable and stable financial institution. Aiming at the diversification of its retail services range, Tsesnabank has started to implement its own fully functional processing center which will enable it to introduce to the market new retail products based on payment cards and raise the flexibility and the quality of corporate and private customer services. The new technological advantages will also allow the bank to achieve the leading position in the highly competitive retail finance market of Kazakhstan. Tsesnabank selected the SmartVista solution for its card business automation among other offerings as a result of an international tender process. The chosen solution, composed of endto-end integrated software modules, will deliver the whole cycle of Visa magstripe and EMV cards issuing and acquiring. Within the project BPC will perform stage by stage migration of the bank s card business from a third party processor to the new platform, and its integration with the sponsor s processing centre. Based on modern technologies, SmartVista will be able to provide business scalability, high performance, flexible mechanisms of integration with other systems and convenient tools to support, develop and integrate the solution as well as to implement new modules and functions. All of these features create the necessary terms for ongoing and efficient card business development. Currently the rapid development of banking business in Kazakhstan requires both the re-evaluation of the financial organisations development strategies and usage of the appropriate IT platforms capable of supporting rapid business growth, underlined Sergey Lukianov, Deputy CEO, BPC. Tsesnabank has chosen SmartVista solution as the most efficient platform, providing all the necessary tools to realise its strategy aimed at the active card business development of the bank. Today only the implementation of modern technologies is able to raise the customers loyalty and attract new clients. Only such highend solutions as SmartVista can ensure that the bank will be able to flexibly follow the rapid changes of the market requirements as well as the support of new products and services for efficient and quick business development, said Alma Isimbaeva, Director for payment cards department, Tsesnabank. publications SmartVista Functionality for Prepaid Cards Prepaid cards are one of the most recent successful innovations in the sphere of payment cards which have already proven their value and found many users worldwide. As with any successful product this offering has created high demand and great competition in the market: International payment schemes, banks and retail end-points are actively launching various types of local and international prepaid products: travel cards, transit system farecards, calling cards, teens cards and certainly the best sellers gift cards. BPC s SmartVista processing solution offers a broad range of capabilities to effectively support and manage all sorts of prepaid cards. The solution fits into multichannel delivery environment, including e-commerce and m- commerce and can be employed by any organisation whose business is focused on any specific element of the payment processing chain. To learn how it works you can download the new brochure SmartVista Functionality for Prepaid Cards at SmartVista s Classic Architecture The retail financial services market of today continues to demonstrate its maturity and high potential for its further active development. Extremely stretched consumer spending creates a growing client base for the bank s card products. In an environment of severe competition the range of these products and the ability for their rapid introduction to the market chiefly determines the bank s survival in the market. In this situation more attention is paid to the establishment of a retail services oriented ITinfrastructure, one of the key elements of which is the card processing system. Let us analyse two major approaches to the processing center architecture to realise which one is capable of better supporting the development of the retail financial business. For more information on SmartVista architecture please refer to the sv_docs.shtml.

4 BPC INTERNATIONAL NEWSLETTER, spring Summer 2008 CONTRACT WINS Vneshprombank (Foreign Economic Industrial Bank) was founded in 1995 as a universal financial institution providing a wide spectrum of banking services both to legal entities and retail customers, including Visa and Eurocard/Mastercard issuing and acquiring. Vneshprombank was among the first Russian banks which offered their customers credit cards supporting all the international standards. Two years ago Vneshprombank started a programme for strategic development of its retail financial services. The programme included expansion of the bank s retail branch network both in Moscow and other Russian regions, and growth of the ATM and POS terminal chain. Currently the bank s strategic plans focus on the development of universal products and services for retail customers, including services related to payment cards. Basing Vneshprombank implements a fully functional processing center based on SmartVista BPC will implement its SmartVista solution as a core of Vneshprombank s fully functional processing centre. The project assumes the deployment of a modern IT infrastructure which will allow the bank to easily and quickly introduce to the market innovative retail products and services based on Visa and MasterCard magstripe and chip EMV cards, to integrate and support the centralised management of various delivery channels and expand the bank s geographical coverage, ensuring the dynamic development of its retail banking business. on this strategy, Vneshprombank embarked on the implementation of its own processing centre. The project s realization was entrusted to BPC, who will implement a fully functional processing solution based on SmartVista software products: transaction switching system SmartVista Front-End, card and merchant management system SmartVista Back-Office and SmartVista CardGen, designed for magnetic stripe and EMV-cards. The fully functional in-house processing centre will perform all the functions for issuing and acquiring of Visa and MasterCard cards and will allow the bank to move away from the third party processing services. Thanks to SmartVista s advantages, Vneshprombank will be able to flexibly manage its card products, offer its customers such modern payment services as P2P money transfers, payments to service providers, credit repayments via self-service kiosks with the use of cards. The bank will be able to introduce and efficiently support other modern payment and banking services based on payment cards. Vneshprombank chose SmartVista after a thorough study of the solution functionality and on the recommendations of its current customers, said Alexander Petrov, Vice President for strategic development of Vneshprombank. We are confident that the flexibility, performance and broad functional range of the SmartVista solution will support the current development plans of Vneshprombank for its card business as well as ensuring future growth and development of the bank in the foreseeable future. The Vneshprombank decision to implement its own processing centre and stop the use of outsourced processing services is a logical step in the development of a dynamic financial organisation specialising in retail services and apt to follow all the modern market requirements to obtain more flexibility and independence for the future business development, underlined Faris Al-Mashta, Director for Business Development, BPC. The bank s choice of the modern SmartVista solution will ensure the required technological support of the bank s plans for the further card business development and customer base extension. CONTRACT WINS BPC to deploy SmartVista to manage Armenian Card self-service terminals network BPC, a leading provider of e-payment solutions for the global financial business announced the beginning of a new SmartVista implementation project in the leading Armenian processing company Armenian Card (ArCa). The deployed solution will provide monitoring and management of the nation-wide self-service network of the processor including ATMs and currency exchange terminals. Armenian Card (ArCa) is the leading payment card processor in the Armenian Republic. The company was established in 2000 by the Central bank of Armenia to issue and acquire cards of the national payment scheme Armenian Card, to provide third party processing services for the MasterCard Worldwide and Visa Int. payment cards and support e-commerce operations. At present the company serves 20 commercial banks in Armenia managing almost the whole card infrastructure of the country. Having faced the problem of lack of performance and poor integrity of the switching solution used by the company, ArCa management decided to implement a modern technology and high performance front-end solution to support its extended ATM and self-service network. ArCa highly valued the functionality and reliability of BPC s SmartVista Front-End solution and chose it to modernise its transaction switching system. The broad functionality and high performance of SmartVista, its scalability and ability to support all the modern payment and banking services available via self-service terminals will allow ArCa to ensure undisturbed operation of its selfservice network and high availability of all the services provided by the company and to significantly expand the range of the self-service options in the future. Besides, SmartVista Front-End offers a wide spectrum of interfaces for online interaction with ATMs, POS devices, self-service terminals, payment schemes and other delivery channels and IT solutions making IT infrastructure built on it universal and allowing the customer to use any selfservice devices regardless of their configuration and manufacturer. Presently to raise the economic performance of the processing centre is possible only through the implementation of modern technologies like SmartVista, which supports all the necessary tools for efficient handling of large ATM and self-service networks providing all the modern services for the successful business development and this was duly recognized by ArCa. Taking into consideration that Armenian Card is a multi bank processing centre, while selecting the processing solution we paid special attention to the opportunity of remote management of both the whole self-service network and separate devices, underlined Shagen Hovhannisyan, Managing Director, Armenian Card. It was the convenience and flexibility of the ATMs and other devices handling through a modern webinterface together with high fault tolerance, performance and scalability which defined our choice of SmartVista. Implementation of a switching system based on SmartVista is the best solution for customers who would like to take full advantage of SmartVista Front-End superior performance and flexibility to enhance their on-line real-time processing power whilst retaining their back-office card management environment comments Faris Al- Mashta, Business Development Director, BPC. BPC has great experience in similar projects which will allow us to quickly realise all of the Armenian card tasks.

5 BPC INTERNATIONAL NEWSLETTER, spring Summer 2008 News BPC joins PCI Security Standards Council BPC Banking Technologies, a recognized provider of e-payment and retail banking solutions, has joined the PCI Security Standards Council (PCI SSC) as a new participating organization. As a PCI SSC member, BPC will work with the Council to evolve the PCI Data Security Standard (PCI DSS) and other payment card data protection standards. The PCI Security Standards Council was formed by the major payment brands American Express, Discover Financial Services, JCB, MasterCard Worldwide and Visa Inc. for development of more reliable mechanisms for cardholder data protection. The Council created PCI Data Security Standard (PCI DSS) which requires merchants and service providers that store, process or transmit customer payment card data to adhere to information security controls and processes that ensure data integrity. As a Participating Organization, BPC will now have access to the latest payment card security standards from the Council and be able to provide feedback on the standards. In an era of increasingly sophisticated attacks on systems, adhering to the PCI DSS represents an entity s best protection against data criminals. By joining as a Participating Organization, BPC Banking Technologies is adding its voice to the process. The PCI Security Standards Council is committed to helping everyone involved in the payment chain protect consumer payment data, said Bob Russo, General Manager of the PCI Security Standards Council. By participating in the standards setting process, BPC demonstrates they are playing an active part in this important end goal. BPC s membership in the PCI Security Standards Council is an important step for our company, said Vasily Grigoriev, CEO, BPC Banking Technologies. BPC intends to make its contribution to the evolution of the payment industry security standards, which is one of the major tasks for all the organizations involved in the e-payment business today. The solutions based on BPC s SmartVista Suite are fully compliant with PCI DSS requirements and furthermore will be constantly updated in accordance with the standard development. About PCI Security Standards Council: The mission of the PCI Security Standards Council is to enhance payment account security by fostering broad adoption of PCI security standards. For more information, please visit technologies BPC s SmartVista allows for funds transfer between payment cards and e-money systems BPC announced a new functional capability of its processing system SmartVista. The new feature allows the banks using SmartVista as the core of their processing centers to link the card accounts of their customers to electronic money systems. Thanks to this possibility the card holders can fill up their card accounts by funds transfer from their e-purses and vice versa. As the process of the service registration assumes the creation of a virtual card number linked to both the card account and the e- purse and is used for the further identification of the customer, the bank card data is safe from online fraudsters. With the development of Internet and the growth of online purchase volumes, such e-money systems as WebMoney, PayPal, E-Gold, e-port, Moneybookers, e-bullion, Pecunix and many others are getting extremely popular with Internet users. They allow for easy and safe purchase of services and goods from various online supermarkets, cheap P2P money transfers and wedge payments to tele-workers. The service also provides a convenient tool for micro-payments which are usually not profitable for banks. New SmartVista functionality will enable card holders to fill their electronic purses and transfer their funds from the e-purses to the cards at any time of the day. Usually these operations are free for a customer and are processed immediately. The service can be registered in the bank office or through an ATM. One of SmartVista s advantages is a special approach to the security of money transactions and cardholder s data. When the service is registered by the customer, the system creates a virtual card which corresponds to the e-purse and the card number and serves as a link between the electronic money and the card account. While performing money transactions the customer is identified by the use of this virtual card number and the number of the bank card is not available to any third parties. Thanks to the new SmartVista function, banks can offer to their customers a new convenient service for quick and safe payments which allows them to attract new clients who currently pay for services by the use of self-service terminals and prepaid cards. By providing remote access to the customers funds, the feature will also contribute to expansion of the banks geographical coverage and reduction of its expenses for customer servicing through branches. Today the development of remote delivery channels becomes an important competitive advantage in the retail finance market and an additional marketing tool for promoting financial organisations, comments Vasily Grigoriev, CEO, BPC Banking Technologies. I am confident that e-banking is becoming foremost amongst available financial offerings, reducing the bank s expense and improving the convenience of the servicing customers requirements. MasterCard and Visa Mandatory Changes SmartVista has been updated in accordance with the new requirements of the International Payment Schemes - Visa Mandatory Changes April 2008 and MasterCard Mandatory Changes The Visa changes include the following: changes in Merchant Category Codes, updates of Authorisations, Reversal Authorisations and Network Management Messages Fields, addition of the Issuer s Account Verification Message, deletion of the Serial terminal number from the chip transaction authorization. The implemented MasterCard requirements are the support of the new product codes and clearing messages field formats and of DE 12, DE 13, DE 37, DE 41 fields in chip and magstripe transactions from ATMs in 0100, 0120 and 0400 messages. Implementation of ATM services in self-service kiosks SmartVista s new functionality will permit the customers to significantly extend the service range available via self-service kiosks networks. The bank can implement the ATM scenarios in the kiosks which will support such standard banking services as C2C transactions, cash and cashless payments, balance statements besides the ordinary cash payments. The HTML graphic format will enable the development of high quality intuitive user interfaces. The update of the fee accuaral mechanisms The SmartVista customers are now able to use a more flexible mechanism of fee accrual. With the new mechanism, the particular merchants can be charged with individual fees. To define these peculiarities a special field describing transactional MSCs should be added to the merchant application. Besides the special merchant fees there was also added the possibility to charge one-time and periodical MSCs. The one-time fee is charges when the merchant or terminal account is registered and the periodical fee is paid for its servicing. The periodical fees are configured depending on the type and amount of the transaction. EMV card issuing SmartVista CardGen system designed for magnetic stripe and chip card personalisation now supports the production of card with MChip4 Select DDA and VSDC DDA applications. The functionality is realised for Gemalto egalleon G2 cards with the use of SafeNet ProtectHostWhite CI HSMs and Gemalto SAM modules.

6 BPC INTERNATIONAL NEWSLETTER, spring Summer 2008 News For over 10 years the BPC Service Centre has been providing comprehensive service and support programmes for ATM networks including equipment installation, training of banks staff, consulting, diagnosis, remote and onsite troubleshooting, spare parts replacement and supply. Because it has all the necessary facilities for quality customer service, highly qualified engineers certified by NCR and Diebold to provide professional BPC Service Centre will support Uniastrum Bank s regional ATM network BPC Banking Technologies announced that its Service Centre has signed an agreement with Uniastrum bank for the overall support of their NCR ATM network currently located in 11 regions of Russia: Kaliningrad, Volgograd, Yekaterinburg, Omsk, Izhevsk, Saint-Petersburg, Vladimir, Ufa, Novosibirsk, Chelyabinsk, and Yaroslavl. maintenance of ATM networks, and a quick and timely response to queries, the BPC Service Centre has become one of the leading Russian service providers in the sphere of terminal banking equipment maintenance. A flexible and comprehensive Regional Partner programme offered by the BPC Service Centre to Uniastrum Bank was specially developed for large ATM networks spread across different cities and regions. The programme uses the bank s regional branch engineers for less complicated troubleshooting and includes training, consulting and remote support services, spare parts supply, and onsite repair. This programme allows the BPC Service Centre to significantly reduce the time and cost of troubleshooting and maintenance. Well arranged and round-theclock accessible ATM network is one of the basic features of the efficient retail banking servicing and an excellent customer loyalty tool. That is why we need the qualified, effective and timely technical support of our self-service network, which was proposed to us by the BPC Service Centre, said Vladimir Lomov, Director, Uniastrum Bank Plastic Card Department. We value the experience and professionalism of the Centre s engineers highly and consider the Regional Partner Programme to be the most comprehensive and suitable for our wide spread ATM chain. The main principles of our Service Centre are efficiency and high quality, underlined Mikhail Sunkin, Head of BPC Service Centre. The Regional Partner Programme has already proven itself as an optimal approach to servicing ATM networks deployed through different regions. By allowing us to combine centralised control with the local presence of the banks engineers, the approach considerably reduces the time for repair and servicing and increases the maintenance efficiency. Events BPC sponsored the 13 th Cards & Payments Asia 2008 and showcased SmartVista to the card business leaders in Asia BPC sponsored the 13th annual Cards & Payments Asia 2008 conference and exhibition, one of the leading card industry events in Asia, where the company showcased its SmartVista Suite and presented its opinion on the importance of the technological platform choice for successful payment card business development. Asia has a rapidly growing market for smart card infrastructure thanks to the many successful programmes that have already been implemented across industries in this region. The annual Cards Asia conference and exhibition is the region s most prominent international showcase of the latest Smart Chip and Card technologies and applications. In his speech Strategic imperative: Using responsive technology to enhance your prepaid business within the Prepaid Card Summit Rajan Narayan, Director BPC Asia Pacific, emphasised the criticality of the prepaid cards for the financial business development allowing banks to offer banking services to the unbanked. He also explained high importance of time-to-market advantage, IT costs discouraging influence on productizing creativity, and the power of flexible parameterization to support various forms of line item transactions. Cards Asia is definitely one of the comprehensive grounds for new product introduction and the largest gathering of smart card industry in Asia Pacific. The BPC team thanks alliances, partners, customers and payment card business representatives who have visited the BPC s stand at Cards Asia 2008 and is looking forward to further successful cooperation. Payment Card 2008 delegates discussed the latest trends of the Ukrainian payment card industry Actively developing its business in Ukraine, BPC traditionally sponsored the 8th International Conference Payment Card which took place on 4-7 June 2008 at the International Exhibition Centre in Kyiv, Ukraine. The Conference covered the latest Ukrainian card and credit industry trends, informed the participants on the main phases of EMV migration in the Ukrainian and CEMEA regions and cashless payments, scoring programs and credit bureaus development, reviewed security and fraud combating issues and presented recent technological innovations for the retail banking business. The BPC s team thanks all the visitors of its workshop and stand where BPC introduced to the Ukrainian market its SmartVista Suite features and advantages.

7 BPC INTERNATIONAL NEWSLETTER, spring Summer 2008 Events BPC showcased SmartVista at the 9 th Cards Middle East, Dubai For the 6 th time BPC took part in Cards & Payments Middle East conference and exhibition, a high level end user card event that addresses all the strategic issues of card and payments applications and technologies, which was held on May 2008 at Al Bustan Rotana Hotel, Dubai, United Arab Emirates. At its stand BPC showcased to business professionals from the GCC, Pakistan, Egypt, the Levant, and other MEA countries its SmartVista Suite, a comprehensive family of products for the processing of electronic payments based on plastic cards, smart chip cards and other personal payment tools, to the industry professionals from different countries of MEA region. The event once again proved that currently the retail banking business in MEA region is one of the most rapidly growing in the world due to better regulation of the local financial markets encouraging local and foreign investment. There are new, sophisticated card products, various types of credit cards and smart cards, and a high mobile phone penetration enabling new delivery channels. Cards in ME have now moved from a simple me too principle to a way of delivering new services and cards are now as important to Islamic banks as to any other form of banking. The high interest to BPC s SmartVista software products allows us to state the growing demand for the modern solutions amongst the leading financial institutions which seek after applying the best international practices for their retail business development. forthcoming events As rapid expansion drives retail banking businesses, it also brings to the fore a host of issues like standards, fraud, new client acquisition, technology adoption, and existing client retention for the region that need to be analyzed, discussed and resolved. Cards & Payments Latin America is one of the most comprehensive places to hear the views of industry leaders BPC sponsors Cards and Payments Latin America 2008 BPC cordially welcomes payment card industry professionals at its stand at Cards and Payments Latin America 2008 a three-day business event featuring the most cutting edge issues affecting the regional cards and payments industry which will take place on September 2008 in Intercontinental hotel, Miami, Fl. Within the conference Rajan S. Narayan, Director BPC Asia Pacific will deliver a speech describing BPC s concept of the next generation cards and payment systems and presenting SmartVista advantages for the development of a business based on payment cards. as they express the challenges they are facing and work towards finding common solutions. The key topics to be discussed during the conference will cover the following fields of Latin America card business experiencing robust growth over the last few years: Fundamental changes driving regional banking growth Transactions fraud identifcation and prevention Banking for the unbanked and retail store banking Instant issuance and the next generation of card technology Remittance services, payment system regulation and development Mobile banking, contactless payments and NFC Building loyalty and rewards programs Private label, fleet, prepaid card, closed and open loop cards At its stand BPC will present its SmartVista family of software products designed to develop and deploy the next generation cards and payment systems and covering all aspects of businesses related to cards and e-payment. BPC s team will demonstrate to the Latin American retail finance industry professionals the advantages of SmartVista payment processing solutions and will be glad to share the company s experience in European and Asia Pacific markets which have proven to be the leaders of the global payment card industry. The Russian and CIS market of plastic cards has been fast developing recently. The key trend of the market is the application of plastic cards as an integrated tool for the implementation of various social and economic projects. Plastic cards become multi-functional going beyond the bank sector. In this situation introduction of various systems Smart Cards and IT Security Systems Exhibition and Conference/CARDEX & IT SECURITY 2008 BPC invites card business professionals to visit its stand and wokshop at the 5th International Exhibition and Conference of Smart Cards and Information Security Systems CARDEX & IT SECURITY 2008, the leading specialised event in bank and IT security sectors, which will take place on September in Hall 5 of the Expocentr at Krasnaya Presnya, Moscow. based on card technologies contribute to the development of efficiency, manageability and optimization of commercial and state companies activities. In these conditions, CARDEX & IT SECURITY 2008 will offer specialists the latest achievements of plastic card industry and the newest technologies of information protection, feature new projects in the field of smart card production, provide for the expansion of business partners, including bank, insurance, telecommunication, trade, social services, hotel and restaurant sectors, and state agencies. This event is aimed at a wide inter-branch cooperation, rather than a narrow bank segment, and introduction of innovative projects in various spheres of Russian economy. The exhibition and the conference will be held under the support of the Ministry of Internal Affairs of the Russian Federation, Bureau of Special Technical Measures of the Ministry of Internal Affairs of the RF, Association of Russian Banks, Association of International Cooperation of Privately Owned Enterprises of Security and Free Economic Society of Moscow. Within the CARDEX & IT Security Conference, on 24 September, Sergey Lukyanov, Deputy CEO, BPC, will deliver a speech on the peculiarities of the modern IT infrastructure for cards and e- payments business development. BPC also invites specialists to its workshop Modern technologies for retail finance business development: features and universal solutions, organized together with HP and devoted to the successful projects and new products of the two companies.

8 8 BPC INTERNATIONAL NEWSLETTER, spring Summer 2008 BPC welcomes card industry professionals to its stand at CARTES 2008 forthcoming events We are pleased to invite card industry professionals to our stand 4 L 065 at CARTES 2008, the world s most prominent show of smart card equipment and technologies, which will take place on November 4-6 at Paris-Nord Villepinte Exhibition Centre in Paris, France. Within the show we will present new products and functionality of the SmartVista Suite, a comprehensive, state-of-the-art family of closely integrated software applications designed to meet the needs of organisations involved in the processing of electronic payments based on plastic cards, smart chip cards and other personal payment tools which support all the modern requirements for high reliability, broad functionality, high performance, scalability and availability. Gathering the leading card business professional each year Cartes and IDentification conference and exhibition devoted to innovative products and technologies for the card industry greatly contributes to the establishment of a direct dialogue between banks and business structures. This year the event will traditionally feature the latest achievements in the field of payment technologies and present the evaluation of the current status of the global bank sector. The delegates will be provided with an opportunity to get acquainted with a wide range of innovative bank services and projects and will be able to discuss critical issues and development strategy of the plastic card market, role of international and national payment systems, card technologies, multifunctional cards and EMV-migration, profitable card business strategies and other topical issues of the industry. Today Central & Eastern Europe is one of the most vibrant regional cards markets worldwide, moving rapidly from emerging status only a few years ago towards a market environment with myriad players and opportunities. Competition has reached a level that requires all stakeholders in the payments chain from issuers to merchant acquirers to understand the latest in best practice and product development to achieve increased profitability. Although the predominance of cash remains a significant obstacle for payment cards, remarkable growth in debit and credit card issuance over the past decade has laid the foundations for more developed strategies which become possible only with the use of the modern IT platforms. In this situation BPC offers to BPC showcases SmartVista at Lafferty Cards Central and Eastern Europe 2008 BPC Banking Technologies, a recognized provider of e-payment and retail banking solutions, welcomes European card industry professionals to its stand at Lafferty Cards Central and Eastern Europe, 1-2 October 2008, Hilton, WestEnd Budapest where the company will showcase its SmartVista Suite for card management and transaction processing. the maturing market its SmartVista solution providing a reliable platform to build a profitable payment cards business and successfully support banks strategies in the CEE region. SmartVista is a truly international solution designed to support all existing global EFT standards and technologies, including EMV, and is open to extend to other emerging or local electronic payment mechanisms and support all the modern industry requirements. The BPC team expects that the conference will provide a perfect meeting platform enabling industry professionals to exchange their views and experiences on the cards and payments landscape in Central and Eastern Europe. BPC Europe is very excited to participate in Lafferty s return to exhibitions in Central and Eastern Europe. This market is the strongest for BPC and SmartVista as the flexibility and innovation we can offer to financial institutions directly addresses the market need to grow card and payment instrument usage. We look forward to many constructive conversations with participants at this exhibition and we are ready to assist in growing the customer base and broadening the product delivery capability of the attendees, comments Nigel Cox, BPC Europe General Manager. The conference will cover the following important aspects of the modern card business successfully supported by the SmartVista solutions: How to build and manage a profitable credit cards business across multiple locations in the CEE region. How to make pre-paid cards work and transform debits cards into a profit centre, representing the principal challenges for all issuers. What is the future of merchant acquiring and processing in the CEE region as usage at the POS rises? How key are loyalty strategies and product opportunities to enhance customer experience and support growth? We look forward to constructive meetings with participants at this exhibition and conference and we are ready to assist in card and e- payments business development and broadening the product delivery capability of the attendees. BPC BANKING TECHNOLOGIES INTERNATIONAL NEWSLETTER 5, spring Summer 2008 Address: Bld. 2, 50A/8 Zemlyanoy Val St., Moscow, Russia, Tel.:+7 (495) Fax: +7 (495) [email protected] Editor: Irina Uzhegova Design and page layout: Tatyana Basko